What is End-of-Life Estate Planning?

Most of us are not thinking about the possibility of becoming disabled in the future, or being diagnosed with a terminal condition. As such, many New Jersey residents fail to engage in end-of-life estate planning, which means that they do not have important documents in place that concern their health care wishes, who will be able to assist with financial matters, and who will inherit their property. In some ways, many aspects of any estate plan involve end-of-life planning, whether it is expected or unexpected. Nobody knows precisely what the future holds, and it is important to be prepared, whether you are a young adult who is healthy, you are an older adult who has chronic health issues, or you are somewhere in between.

What aspects of estate planning allow you to prepare ahead of time for end-of-life needs, whether that is in the near or distant future?

Health Care Planning and Your Health Care Wishes

If you are seriously injured and left incapacitated, or if you become seriously ill and cannot voice your own health care decisions at the end of life, you will want to make sure that your wishes are honored by your health care team and your family. This is what advance directives in New Jersey are for.

First, you can create a proxy directive (also known as a durable power of attorney for health care) in which you name a person who you trust to make certain health care decisions for you. This person will only have the authority to make your health care decisions if you are incapacitated. In addition, you can create an instructive directive (also known as a living will), through which you can identify what types of life-sustaining treatments or care you do or do not want to receive. For example, you can decline all life-sustaining measures in the event of terminal illness or a state of permanent unconsciousness, or you can indicate that you want to receive all life-sustaining measures, or indicate your preference to receive and decline certain measures.

Paying for health care is also something that should be part of your estate plan, with a particular emphasis on protecting certain assets while being eligible for Medicaid coverage if you end up needing long-term care in a nursing home.

Financial Planning 

As we noted above, if you become seriously ill and require care in a nursing home during the months or years leading up to your death, you will not want to spend down all of your savings to pay for costly nursing home care. Instead, you can make plans ahead of time for asset protection through Medicaid planning with an estate planning attorney.

You will also want to be sure that someone you trust can handle your financial needs at the end of your life if you become incapacitated. You can create a durable financial power of attorney, through which you can name a person you trust to serve as your agent and handle all financial and related legal matters on your behalf.

Leaving Your Property

Whether you are receiving end-of-life care or want to have peace of mind by planning far ahead, you will want to work with an estate planning attorney in Summit to determine the best ways to leave your property to your loved ones  whether those are individuals or charitable organizations.

An estate planning lawyer can work with you to create a will, a revocable living trust, as well as other types of trusts and beneficiary designations depending on the specifics of your assets and your intended beneficiaries.

Contact a Summit Estate Planning Attorney 

Do you need help with end-of-life estate planning, or do you have questions about estate planning? Contact one of the experienced Summit estate planning attorneys at Dempsey, Dempsey & Sheehan today.

Sources:

law.justia.com/codes/new-jersey/title-3b/

nj.gov/health/advancedirective/ad/forums-faqs/